Iowa County democrat. [volume] (Mineral Point, Wis.) 1877-1938, 1887-12-09
The Surplus. and the Measure es That
Should be Taken TO Reduce 1t.
Other Subjects viii be Treated in Sub
sequent Messages if Necessary.
The Shortest Message on Record.
NATIONAL FINANCES.
THAT AWFUL SURPLUS.

10 the Congress or the United States:
You are confronted at the threshold of
your legislative duties, with condition
of the national finances which impera-
lively demands immediate and careful
consideration. The amount of money
annually received, through the operation
of present laws from the industries and
necessities of the people, largely exceeds
the sum necessary to meet the e1igencies
OF the government. When we consider
that the theory of our institutions guar
antees to every citizen the full endow-
ment of the fruits OF his industry and
enterprise with only such deduction as
may be his share towards the careful and
economical maintenance of the govern
ment which protects him, it is plain that
the exaction of more than this is inde-
fensible and culpable betrayal of fair
ness and justice. This wrong inflicted
upon those who bear the burden of ma
tionsl taxation, like other wrongs, multi
plies a brood of evil consequences. The
public treasury, which should only exist
rs conduit conveying the peoples trib
ute to it's legitimate objects of expendi-
ture, becomes boarding place for money
needlessly Withdrawn from trade and the
peoples use. Thus crippling our national
energies, usurping our country's develop
ment, preventing investment in product
i've enter prises, threatening fnaacial dis
turbance, and inviting schemes OF public
plunder.
This condition of our treasury is not alto
gether new; ana it has more than once of
late been submitted to the peoples repre-
sentatiyes in the congress, who alone can
apply remedy, and yet the situation
still continues, with aggregative Incl
dents, more than ever presagiDg financial
convulsion and widespread disaster. 1t
will not do to neglect this situation be-
cause the dangers are not now palpably
imminent and apparent. They exist
none the less certainly and the unforeseen
and unexpected occasion will come when
suddenly they will be precipitated upon
US.
On the 30th day of June, 1885, the ex-
cess of revenue over public expenditures
after complying with the annual require
ment of the sinking fund act, was S17,-
S59,735.S4; during the year ended June
80, 1856, such excess amounted to $49,-
405,545.20; and during the year ended
June 80, 1887, it reached the sum of $685.
567,S49.54.
The annual contributions to the sink
ing fund during the three years above
specified, amounting in the aggregate to
S139, ,05S, ,320.94, and reductions from the
surplus as stated were made by calling
in for that purpose outstanding three
per cent. bonds of the government.
During the six months prior to June 80,
1887, the surplus revenue had grown SO
large by repeated accumuAations, and it
was feared the withdrawal of this great
sam of money needed by the people,
would so effect the business of the coun-
try that the sum of $79,S64, 100 of such
surplus was applied to the payment of
the principal and interest of the three
per cent. bonds still outstanding, and
which were then payable at the option of
the government. The precarious condi-
tion of financial affairs among the peo-
pie still needing relief, Immediately after
the 30th day of June, 1887, the remain
der of the three per cent. bonds then out
standing, amounted with principal and
interest to the sum of $18,S77, 800, we're
called in and applied to the sinking fund
contribution for the current fiscal year.
Notwithstanding these operations of the
treasury department representations of
distress in business circles not only con-
tinued but increased, and absolute peril
ed at hand. In these circumstances
the contributions to the sinking fund
for the current fiscal year was
at once completed by the e1pendi-
ture of $27,6S4,2S5.55 in the
purchase of government bonds not yet
due bearing four and four and half per
cent. interest, the premium paid thereon
averaging about twenty-four per cent.
for the former and eight per cent. for the
latter. In addition to this the interest
accruing during the current year upon
the outstanding bonded Indebtedness of
the government was to some extent an
ticipated and banks selected as deposi
tories of public money were permitted to
somewhat increase their deposits.
While the e1pedients thus employed,
to release to the people the money lying
in the treasury, served to avert imIuedi-
ate danger, our surplus revenues have
continued to accumulate, the exces, for
the present year amounting to, on the
first day of December, $55,25S,s71.l9,
and estimated to reach the sum of S113,-
100000 on the 3oth of June next, at which
date it is expected tLat this sum, added
to prior accumulations, will swell the sur
plus In the treasury to $140,O00,000.
There seems to be no assurance that,
with such withdrawal from use of the
PSopiS SIiSuidtiuS hS1iuu our business
community may not in the near future,
be subjected to the same distress which
was quite lately produced from the same
cause, and while the functions of our ma
tional treasury should be few and sim pie,
snd while Its best condition would be
reached, 1 believed by it's entire discon-
nection with the private business inter
osts, yet when, by pervsrsion OF Its pur-
IiiV holds n al al NIB
trac;ed from the channels of trade, there
seems to be reason for the claim that
legitimate means should be devised by
the government. to restore IN an emery
encg without waste or extravagances such
money to its place among the people.
Ii such an emergency arises there nov
exists no clear and undoubted executive
noser of relief. Heretofore the redemp-
tion of three per cents only, which were
payable at the option of the government
has afforded a means for the 6isburse-
meu. of the excess of our revenues; but
these bonds have all been retired and
there are no bonds oct standing the pay
ment of which We have the right to insist
upon. The contribution to the sinking
fund which furnishes the occasion for
expenditures in the purchase of bonds
has been already made for the current
year, so there IS no outlet in that direc-
ton In the present state of legislation
the Only pretense of any existing execu-
tive power to restore at this time, any
part of our surplus revenues to the peo-
pie by its expenditure, consists in the
supposition that the secretary. of the
treasury may enter the market and pur-
chase the bonds of the government not
yet due, at a rate of premium to be
agreed upon.
The provision of Law from which such
a power could be derived from is found
in &c appropriation bill passed a number
OF years ago, and it is subject to the sup
position that it was intended as tempoarv
and limited in its application instead of
conferriEg continuing discretion and
authority. No condii ion ought to exist
which would justify the grant of power
to single official upon bis Judgment of
its necessity, to withhold from or re-
lease to the business of the people In an
unusual manner, money held in the
treasury and thus affect at his Will, the
financial situation of the country; and If
It Is deemed wise to lodge In the secretary
of the treasury the authority In the
present junct1re to purchase bonds. I.
should be plainly vested. and provided
IS far as possible With such checks and
limitations ~ viii define his official right